East meets West in an unusual supply chain partnership.

In its humble days as a startup company brokering parts in the early ’90s, Wantagh, NY-based Dalatec Corp. (dalatec.com) learned a thing or two about working with overseas product vendors. Indeed, the component distributor’s breakthrough came when it hooked up with key players in Israel. Ever since, the company has continued to evolve abroad. Dalatec president Morey Solomon says, “We became a supply chain without even knowing it.”

And now that it’s looking to expand its U.S. market presence, it has enlisted the help of Eversun Electronics (eversun.com.tw). In April, Dalatec announced a partnership with the Taiwan-based EMS provider. Although precedents are hard to find, the partnership between the U.S. component distributor and Taiwanese manufacturer is a move that makes perfect sense to Dalatec. Says Solomon, “There is merit to providing global synergy: supply components and assembly, and Dalatec was looking for a unique partner.”

In fact, the one-stop shop is a trend that’s been taking shape over the past several months. As noted in this space last month (“Return of the One-Stop Shop,” May 2007), and previously (“The Future of PCB Procurement," February 2006), some suppliers are moving toward an all-under-one-roof model. However, to date most purveyors’ – which include distributor powerhouses like Avnet and Arrow – in-house offerings included design services, logistics, components and assemblies. For those distributors that did not perform their own manufacturing, assemblies were not part of the line card.

Until now, that is.

Mutual friends. The back-story is more personal than professional. Solomon recalls that Dalatec initially became acquainted with Eversun in August 2005 after a mutual friend encouraged a visit. Dalatec was impressed that Eversun was running a cleanroom and lead-free reflow well before Europe’s compliance deadlines. The two companies clicked immediately. Solomon shares, “Their staff was very cooperative and easy to talk to, and they are quick to respond. It was just meant to be.”

Eversun’s size was a good match for the types and quantities of customers Dalatec can support. Eversun’s Kaoshiung, Taiwan, facility has four assembly lines and 250 employees; in mainland China, 280 employees run five assembly lines. The capacity was sufficient to meet Dalatec’s lead times, typically six to eight weeks.

After an initial meeting, Dalatec agreed to support Eversun on a case-by-case opportunity. The two have been linked since, but not until early April did they agree Dalatec would handle North America solely. (Eversun does not work with other distributors.) Solomon attributes this relationship in part to being attuned to customers’ needs and having established excellent communication over the years, particularly in the Asian markets. Again, the connection is personal. While Solomon uses translators to bridge the language gap, one of them is his son, David.

The Solomon family ties to Taiwan and China run deep. David Solomon attends National Taiwan University. He also has family involved in banking and academia in Taiwan and China. “Thus, the company has not only business, but a deep cultural connection to the Far East,” Morey says.

Dalatec has made certain arrangements to ensure Eversun doesn’t lock in the New York firm’s OEM customers, agreements that will become more formalized based on mutual performance. However, the president ensures, “There is already a trust and respect from working together and doing previous business in another country.”

Solomon talks at length about mutual deference and gaining trust by presenting Dalatec’s engineering competence on its Web site, which is the way the company has predominantly marketed itself thus far. “Companies contact us directly,” he says.

“It is our intention to sell by being prolific in ‘all of the above.’ Dalatec has developed key manufacturers and vendors who have complete faith in what we are doing, and we are going to seminars. Also, we are beginning to advertise,” Solomon explains.

Presently, North American responsibilities are shared between Solomon and project manager Ray Ramirez, but the company plans to hire more staff soon. Ramirez and Solomon plan to cover PCB and CNC assemblies (which are associated with other companies).

Dalatec currently has various electronics assembly projects in development and some have already taken place, but Solomon said nondisclosure agreements prevent him from discussing them. Nor would he disclose the amount of assembly business for which the companies are co-responsible. Still, this unlikely marriage represents an unusual and interesting twist on the traditional supply chain segments, and could signal yet another a shift in the component distribution line card.

Chelsey Drysdale is associate editor of Circuits Assembly; cdrysdale@upmediagroup.com.

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